ESG News Recap: Thirteen Hotspots Face Starvation, UN Warns

Today’s ESG Updates

Starvation risk escalates in 13 global hotspots: A UN report warns of urgent humanitarian crises, urging immediate aid to prevent famine.
EIB allocates €1.6B for Bay of Biscay power link: The European Investment Bank is funding a key electricity interconnection between Spain and France.
Morocco ramps up desalination and dam projects: Facing prolonged drought, Morocco is expanding its freshwater infrastructure.
U.S.-China tensions disrupt battery production: Escalating trade restrictions are stalling American battery projects, exposing the fragility of U.S. supply chains.

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Starvation looms in 13 “hunger hotspots” worldwide

The United Nations released a report Monday highlighting the urgent need for aid in 13 areas across the globe. According to the report, Palestine, Sudan, South Sudan, Mali, and Haiti were the top five states facing immediate starvation. In Sudan, 25 million people are at risk, as famine was confirmed last year. The report, created by the UN’s Food and Agriculture Organization (FAO) and World Food Programme (WFP), calls for investors to secure much-needed humanitarian aid for these states. Cindy McCain, the WFP’s Executive Director, said, “Without funding and access, we cannot save lives.” While funding is crucial, the root causes of this hunger are climate hazards and conflict. This report calls for immediate intervention, urging companies to reassess their strategies regarding climate resilience and social equity.

📊 Insight: The 13 “hotspots” facing extreme hunger are red alerts for ESG-focused investors, policymakers, and corporations. ESG is not simply about green investments; it is also about humanity and a better world. The social impacts of global food insecurity and political instability in these hotspots are paramount ESG considerations, as companies must consider their impact on the world.

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Further reading: UN warns of starvation in ‘hunger hotspots’

EIB allocates €1.6 billion to Bay of Biscay interconnectivity project

The Bay of Biscay project will increase capacity between Spain and France from 2,800MW to 5,000MW. Photo Credit: Free Nomad

In an effort to connect the Iberian Peninsula with mainland Europe, the European Investment Bank (EIB) is allocating €1.6 billion for the Bay of Biscay electricity interconnection project. This project will be crucial for enhancing Spain’s connectivity with France and the rest of the EU. Nadia Calviño, president of the EIB Group, said, “EIB support for the France-Spain electricity interconnection will be key to ensuring that the Iberian Peninsula is no longer an energy island.” Construction has already begun on the project, which is expected to become operational in 2028. The new Bay of Biscay link is estimated to cut 600,000 tonnes of carbon emissions annually, while increasing France and Spain’s electricity exchange capacity to 5,000 megawatts (MW).

📊 Insight: Doubling the electricity exchange capabilities between these two countries is crucial, particularly in light of the recent blackout. The Bay of Biscay interconnection strengthens Europe’s clean energy transition, enhancing energy security, affordability, and decarbonization.

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Further reading: EIB supports with €1.6 bn the strategic Bay of Biscay electricity interconnection between Spain and France

Morocco to accelerate desalination plants and dam projects

While drought persists throughout the country, Morocco’s demand for freshwater continues to increase. Photo Credit: Maria Krasnova

To meet rising freshwater demands, Morocco is investing in desalination and waterway systems. The country has faced years of drought, which has impacted not only the food supply but also employment and cattle populations. A waterway, backed by funding from the UAE, is expected to be extended by 2030. The expansion aims to fill in dams along the waterway’s current route from the northwest to Rabat and Casablanca and beyond, aiding farmers in the dry regions of Doukala and Tadla. Currently, Morocco has 17 operational desalination plants. The country plans to increase its capacity to 1.7 billion cubic meters of fresh water annually by 2030, with four plants currently under construction and an additional nine planned. The water minister plans to incorporate renewable energy into the projects, lowering the cost of water nationwide.

📊 Insight: Morocco is embedding ESG strategies into national infrastructure policy. Through sustainable agriculture, inclusive water use, and renewable energy, the developing economy is tackling environmental risks while aligning with global sustainability goals.

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Further reading: Morocco invests in desalination, waterways to mitigate drought

U.S.-China relations slow battery manufacturing

While the Trump administration wants to cut ties with China, experts warn that the consequences could be dire. Photo Credit: Chuttersnap

As China’s access to American markets is quickly being restricted by Republican lawmakers, rechargeable battery manufacturing has come to a halt in the United States. With the Trump administration seeking to impose steep tariffs and withhold tax credits from corporations affiliated with China, projects have been delayed and canceled. Companies like AESC and Group14 Technologies are withdrawing investments, while Ford’s $3 billion battery factory is at risk. Trump and his advisors are advocating for more manufacturing and mining of critical materials within the United States. However, experts warn that severing all ties with China could cripple U.S. manufacturing efforts, as China has a significant market advantage in battery components. The slowdown in the electric vehicle market further compounds the issue.

📊 Insight: Rising political and trade tensions with China are threatening the U.S. battery manufacturing boom, creating uncertainty for clean energy supply chains and potentially derailing climate transition goals. Efforts to build a domestic battery industry are now clashing with national security-driven restrictions, highlighting the complex interplay of ESG strategies.

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Further reading: Trump’s Trade and Tax Policies Start to Stall U.S. Battery Boom

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Emad El Byed